Why Shares of U.S. Concrete, Inc. (USCR) Surged Today

U.S. Concrete, Inc. (NASDAQ:USCR) is among the top gainers of the stock market today, skyrocketing 6.28% or (2.8 points) to $47.41 from its previous close of $44.61. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 160562 contracts so far this session. USCR shares had a relatively better volume day versus average trading capacity of 224.64 thousand shares, but with a 15.88 million float and a 4.55% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for USCR stock indicates that the average analyst price target is $57.71 per share. This means the stock has a potential increase of 21.73% from where the USCR share price has been trading recently which is between $43.61 and $45.34. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $43.

The shorts are climbing into U.S. Concrete, Inc. (USCR) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a rise in short interest in USCR shares. While short interest still represents only 16.19% of USCR’s float, the number of shares shorted have risen by 153837. The number of shares shorted advanced to 2723745 shares, up from 2569908 shares during the preceding fortnight. With average daily trading volumes at 168334 shares, days to cover increased to about 14.23393 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “What Did U.S. Concrete, Inc.’s (NASDAQ:USCR) CEO Take Home Last Year?” and dated August 12, 2019.

During the recent trading session for U.S. Concrete, Inc. (NASDAQ:USCR), the company witnessed their stock rise $3.63 over a week and tumble down $-4.44 from the price 20 days ago. When compared to their established 52-week high of $54.95, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/20/18. The recent low of $27.68 stood for a -13.72% since 10/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.24 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for U.S. Concrete, Inc., the two-week RSI stands at 52.52. This figure suggests that USCR stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current USCR readings is similarly very revealing as it has a stochastic reading of 43.28% at this stage. This figure means that USCR share price today is being neutral.

Technical chart claims that U.S. Concrete, Inc. (USCR) would settle between $45.43/share to $46.25/share level. However, if the stock price goes below the $43.7 mark, then the market for U.S. Concrete, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $42.79 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.21. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Stifel lowered their recommendation on shares of USCR from Buy to Hold in their opinion released on July 18. SunTrust analysts have lowered their rating of U.S. Concrete, Inc. (NASDAQ:USCR) stock from Buy to Hold in a separate flash note issued to investors on January 31. Analysts at SunTrust, made their first call for the equity with a Buy recommendation, according to a research note that dated back to August 08.

USCR equity has an average rating of 1.62, with the figure leaning towards a bullish end. 8 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 6 analysts rated U.S. Concrete, Inc. (NASDAQ:USCR) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, USCR stock price is currently trading at 11.93X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.96 while for the average stock in the same group, the multiple is 3.79. U.S. Concrete, Inc. current P/E ratio of 47.24 means it is trading at a premium against its industry’s 24.51. In the past 5 years, this ratio for the stock has been fluctuating between 18.33 and 110.96.

U.S. Concrete, Inc. (USCR)’s current-quarter revenues are projected to climb by nearly 8.11% to hit $437070, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 5.49% from $1.51 billion to a noteworthy $1.59 billion. At the other end of the current quarter income statement, U.S. Concrete, Inc. is expected to see its adjusted earnings surge by roughly 89.04% to hit $1.38 per share. For the fiscal year, USCR’s earnings are projected to climb by roughly 29.29% to hit $3.09 per share.